Global Education Ltd Management Discussions

GLOBAL ECONOMIC SCENARIO :-

Over the past few years, the journey has been marked by notable events, commencing with disruptions in the supply chain following the pandemic. This was followed by the Russia-Ukraine con ict, triggering a global crisis in energy and food supply, alongside a signi cant in ation surge. Subsequently, there was a globally synchronized tightening of monetary policy. Despite fears of a severe recession, global GDP grew by an estimated 3.2% in CY 2023, a decline from the 3.5% growth witnessed in CY 2021. Fortunately, the world managed to evade a recession, with the banking system displaying considerable resilience, and major emerging markets avoiding abrupt economic halts. Notably, economic growth exceeded expectations in the latter half of 2023 in the United States and various major emerging market economies. However, this momentum was not uniform across all regions, with subdued growth observed in the euro area, attributable to factors like weak consumer sentiment and the enduring impact of elevated energy prices on interest-sensitive sectors.

This apparent resilience, however, conceals both short-term risks and structural vulnerabilities. Persistent upward pressure on prices remains prevalent in numerous countries. Escalating con icts in the Middle East pose the risk of disrupting global energy markets and reigniting in ationary pressures worldwide. As the global economy braces for the delayed e ects of signi cant interest rate hikes, major central banks in developed countries have indicated their intent to maintain higher interest rates for an extended period. The prospect of a prolonged period of elevated borrowing costs and tighter credit conditions presents signi cant challenges for a world economy burdened by high levels of debt, while also necessitating increased investment to stimulate growth and address climate change, along with progress towards Sustainable Development Goals (SDGs). Moreover, stringent nancial conditions, coupled with a growing risk of geopolitical fragmentation, amplify the threats to global trade and industrial production.

Unmet revenue expectations have prompted a pragmatic shift, where maintaining robust pro t margins has become paramount for corporations amidst the uncertain macroeconomic environment. In extreme cases, organizations have resorted to cost-cutting measures, such as workforce reductions and trimming discretionary expenditures. GEL has demonstrated signi cant outperformance over the past decade, attributable to factors such as market share gains resulting from a customer-centric strategy, an agile organizational structure, and stable leadership. Investments in organic talent development, research, innovation, intellectual property, brand enhancement, and the cultivation of new capabilities have expanded the companys client base and bolstered customer satisfaction through improved execution.

INDIAN ECONOMIC SCENARIO :

Over the past decade, India has exempli ed a robust and resilient growth narrative propelled by determination, innovation, and foresight. Despite facing unprecedented challenges such as the Covid-19 pandemic and geopolitical tensions, the Indian economy has showcased an exceptional capacity to rebound and transform obstacles into opportunities while striving for robust, sustainable, inclusive growth. Indias real GDP is projected to expand at an average rate of 7.9 percent between FY22 and FY24, a testament to its consistent post-pandemic recovery, which few economies globally can match. Over the span of a decade, India has ascended from the worlds tenth-largest economy to the fth-largest, establishing itself as a nation with immense potential supported by remarkable performance.

The driving forces behind Indias GDP growth in the rst half of FY2023-24 are strong domestic demand for consumption and investment, coupled with the governments sustained focus on capital expenditure. During this period, the industry and services sectors emerged as the primary catalysts for growth, propelling India to achieve the highest growth rate among major advanced and emerging market economies. According to the IMF, India is poised to become the third-largest economy by 2027 in terms of USD at market exchange rates, with its contribution to global growth expected to increase by 200 basis points over the next ve years.

Macroeconomic stability and enhancements in Indias external position, particularly a signi cant reduction in the current account de cit and the resurgence of capital in ows supported by ample foreign exchange reserves, have contributed to the stability of the Indian rupee in FY 2023-24. Additionally, in ationary pressures in India have notably eased, largely driven by proactive supply-side initiatives implemented by the government, as highlighted in the Macro-Economic Framework Statement 2024-25.

EDUCATION & TRAINING INDUSTRY IN INDIA:

The education industry stands as one of the most rapidly evolving sectors globally, contributing signi cantly to both revenue generation and employment opportunities. Recent years have witnessed substantial transformations in the education landscape, driven by factors such as increasing demand for foreign education, the rise of e-learning, and the expanding test preparation market. Globalization has heightened the call for enhanced education quality, largely through heightened private sector involvement. The burgeoning e-education market emerges as a high-potential segment within the industry.

Internationalization has emerged as a key driver for growth in higher education, with institutions integrating intercultural dimensions to attract top talent, enhance educational quality, and bolster revenue streams. This trend is further fueled by the global surge in tertiary enrollments, emphasizing the importance of internationalization e orts in teaching and research.

India occupies a pivotal position in the global education landscape, boasting one of the worlds largest networks of higher education institutions. Despite these strengths, there remains ample room for further development and enhancement within the Indian education system. Government initiatives, such as the aim to elevate the gross enrollment ratio to 37 percent by 2024 and the embrace of cutting-edge technologies like AI, ML, IoT, and blockchain, are poised to reshape the education sector signi cantly.

The Governments commitment to skill development is underscored by initiatives like the Skill India Mission, aimed at upskilling millions of Indian youths by 2024. Foreign Direct Investment (FDI) liberalization since 2003, alongside signi cant investments in the sector, underscores the strategic priority placed on education by the Government.

The Central Government plans to disburse US$ 1 billion to states for introducing skill development initiatives. Skill India Mission 2015 is aimed at skilling 400 million Indian youths by 2024. Skill India program has bene tted more than one crore (10 million) youth annually. Education sector in India remains to be a strategic priority for the Government. The Government has allowed 100 per cent Foreign Direct Investment (FDI) in the education sector through the automatic route since 2003. From April 2000-September 2023, Foreign Direct Investment (FDI) equity in ow in the education sector stood at US$ 9.44 billion according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

MARKET SIZE

Market projections indicate robust growth, with Indias education market expected to reach US$ 225 billion by FY25, up from US$ 117 billion in FY20. The proliferation of edtech solutions is anticipated to drive substantial growth, with the Indian edtech market forecasted to grow from US$ 700 800 million in 2021 to US$ 30 billion by 2031. Additionally, Indias ascent as the second-largest market for e-learning underscores the sectors immense potential for expansion.

In FY20, 42,343 colleges were operating in India. There were 1,072 universities in India as of November 25, 2022. There will be 8,902 AICTE-approved institutions in India overall in 2022 2023. There are 3,577 undergraduate, 4,786 postgraduate, and 3,957 diploma institutions out of these 8,902 institutions. The Indian edtech market is anticipated to grow from US$ 700 800 million in 2021 to US$ 30 billion by 2031. India has surpassed the US to become the second-largest market for e-learning, according to KPMG. In India, the market for online education is anticipated to increase by US$ 2.28 billion between 2021 and 2025, at a CAGR of about 20%.

GOVERNMENT INITIATIVES

Union Minister for Education and skill development & Entrepreneurship Shri Dharmendra Pradhan lauded the Interim Budget 2024-25 as a stepping stone to make India a developed country by 2047. The Budget gave further momentum to women-led development, ful lling aspirations and furthering ease-of-living for all, green growth and employment generation leading to incremental all-round development across sectors.

The Indian education sector is at a crucial stage in its growth phase. The countrys demographic advantage of a large young population coupled with low gross enrolment ratios (GERs) presents a huge opportunity to players in the education sector. Government initiatives aimed at the education industry encompass a range of policies and programs designed to enhance various aspects of the sector. Here are some key initiatives

1. National Education Policy (NEP): The NEP, introduced in 2020, is a comprehensive reform aimed at transforming the education sector. It focuses on foundational literacy and numeracy, revamping curricula, promoting vocational education, and encouraging research and innovation.

2. Skill India Mission: Launched in 2015, the Skill India Mission aims to provide skill training to millions of Indian youths to enhance their employability. It includes various schemes and programs to impart vocational training and certi cation across di erent sectors.

3. Digital India: The Digital India initiative promotes the use of technology in education by expanding digital infrastructure, providing internet connectivity to schools and colleges, and promoting digital literacy among students and teachers.

4. Rashtriya Uchchatar Shiksha Abhiyan (RUSA): RUSA is a centrally sponsored scheme aimed at improving the quality of higher education in India. It focuses on infrastructure development, faculty improvement, and promoting equity and access in higher education.

5. Atal Innovation Mission (AIM): AIM aims to foster a culture of innovation and entrepreneurship among students by establishing Atal Tinkering Labs (ATLs) in schools, Atal Incubation Centers (AICs) in universities, and providing support for innovation and startup activities.

6. SWAYAM (Study Webs of Active Learning for Young Aspiring Minds): SWAYAM is an online platform that o ers free courses and learning resources to students across India. It provides access to high-quality educational content from universities and institutions across the country.

7. Pradhan Mantri Kaushal Vikas Yojana (PMKVY): PMKVY is a skill development initiative aimed at providing training and certi cation to youth across various sectors to improve their employability and entrepreneurship skills.

8. Quality Improvement Programs: Various initiatives focus on improving the quality of education at all levels, including the establishment of quality assurance agencies, teacher training programs, and accreditation frameworks for institutions.

These initiatives collectively aim to address the challenges faced by the education industry, promote inclusive and quality education, and prepare the workforce for the demands of the future economy.

WAY FORWARD:

In 2030, it is estimated that Indias higher education will:

Combine training methods that involve online learning and games, and it is expected to grow by 38% in the next 2-4 years.

Adopt creative and transformational strategies for higher education.

Own a 50% increased Gross Enrolment Ratio (GER).

State-level, gender-based, and societal disparities in GER should be reduced to 5%.

Become the worlds leading supplier of talent, with one in four graduates coming from the Indian higher education system.

Be among the top ve countries in the world in terms of research output with an annual R&D spend of US$ 140 billion.

Have more than 20 universities ranked among the top 200 in the world.

Education sector has seen a host of reform and improved nancial outlays in recent years that could possibly transform the country into a knowledge heaven. With human resource increasingly gaining signi cance in the overall development of the country, development of education infrastructure is expected to remain the key focus in the current decade. In this scenario, infrastructure investment in the education sector is likely to see a considerable increase in the current decade. Aside from focusing on innovative education methodologies such as E-learning and M-learning, several government programmes are being implemented to encourage the expansion of the remote education business.The Indian government has taken a number of actions, such as creating new IITs and IIMs and providing educational grants for research scholars in most government institutions. Furthermore, the higher education sector in India is poised for signi cant change and development in the years to come as a result of the growing usage of the online form of education by several educational institutions.

E-Learning:

The online education industry is transforming rapidly, and it is evident with the growing adoption of digital learning.

The online platform providers play a core role in online education system. Initially, the platform served as enablers by connecting prospective students and content providers. Online education in India has a mix of dedicated online only and o ine players with an online presence. C2C business models have also emerged where the platform connects prospective teachers and student. B2B o erings are prevalent in higher education, where institutions o er degree/diploma courses to students through their own platforms or third party aggregators.

The country has become the second largest market for E-learning after the US. The sector is expected to reach US$ 2.46 billion by 2023 with around 9.5 million users. 2021 changed the course of education across the world, but it has especially been a year of change for online learning. This year proved that blended learning, video classes and upskilling are not just temporary trends but will continue to grow and evolve in the years to come. The online learning industry in India is expected to reach $4 billion by 2025.

In FY 2022, online education entered into the second year of the pandemic. The covid period has opened up several opportunities for tech talent and with several advancements and innovations coming to the fore; the sector is continuously striving to provide new opportunities for young talent, both in terms of realigned skill sets as well as completely new job roles. Technology is playing a large role in how were approaching education.

Technologies such as Augmented and Virtual Reality (AR/VR) and Arti cial Intelligence (AI) were already on an upswing, but the pandemic has accelerated the pace of their adoption. Edtech revolution is not just a temporary trend fuelled by the pandemic, but a permanent change in the way education will be imparted in the future. The colossal scale of the transfer of knowledge, and the availability of interactive learning, made possible by edtech platforms have breathed in a new life into Indias education system that was traditionally rigid when it came to adoption of tech. Thus, in 2024 and the decades to come, edtech will continue to transform teaching-learning processes for the better. Industry reports suggest that the aggregate revenue of Indian Edtech startups has doubled since FY 2018 and this rate is expected to only multiply. Coupled with an exponential rise in the number of paid Edtech users (projected by KPMG to reach 37 million by 2025), the Indian Edtech industry presents huge opportunities for foreign investors.

Increasing Investments from Venture Capital Firms in Education-Technology to Surge Market Opportunities.

Over the past ten years, education-technology (EdTech) deals have exploded in value and number, reaching approximately 300 transactions by 2020. In parallel, the number of venture capital (VC) investing in EdTech companies is increasing dramatically. As per the World Economic Forum (WEF) report of April 2019, the global Ed-tech investments have reached USD 18.66 billion in 2019. According to the annual report published by European EdTech VC Educapital, global Ed-tech investment was projected to be growing by 77% in 2018 to reach USD 8.3 billion. The United States, France, India, and China are the major investors in Ed-tech. Similarly, prominent companies such as Owl Ventures, Kapor Capital, Exceed Capital, and others are investing in many educational technologies to improve the education system. Thus, growing funding for transforming the education system will drive advanced higher education technology market opportunities

Automation to the new normal for schools.

Covid paved the way for schools to incorporate automation in the form of ERP software. They have been embracing automation as a solution to minimize the burden on teachers as well as bridge the teaching-learning gaps. It is anticipated that automation in schools will pick up pace in the times ahead! This trend was highlighted by Modor Intelligence in its recent report which states that the global ERP market size for schools in 2020 was valued at $8.05 billion and is projected to reach $18.82 billion by 2026 growing at a CAGR of 16.2%. The study also points out that the Asia Paci c region especially India is the fastest-growing market. It further highlights that schools are increasingly adopting automation and the solution will emerge to be the new normal for schools in the times to come.

Automation is playing a major role in seamless school management as well as ful lling the demand of schools, students and parents. By adopting ERP software, they are able to function with a data-based approach and manage operations smoothly. Not only it o ers high-end educational experiences to the learners but even enables parents to stay updated about their childs progress and ongoing school activities in real-time. With this new-age technology, schools have been able to turn paperless! On the whole, the solution is streamlining the work ow, o ering superior educational experiences as well as bringing parents closer to their childrens school life.

Corporate Training :

Due to the inadequacies in the Indian Education system which does not prepare an individual with vocational and employment ready skills, the companies have to spend a signi cant amount of nancial resources on the proper organizational training of the employees. This is one of the main reasons that the Indian Corporate training market is expected to experience a steady growth by 2023. It is anticipated to reach Rs. 4,700 crore by FY2025 by a CAGR of 12.5% (FY17-FY24). With a plethora of new, advanced technologies and concepts such as Arti cial Intelligence, the demand for training is not only going to increase but also be diversi ed. Companies have realized that while normal calendar training is important, disruptive training is becoming the need of the hour as it is more e ective in creating a more productive and skilled taskforce.

Soft skills gaining prominence as this helps in better communication and coordination with their counterparts at work. Companies are more and more looking for job-ready talent who can hit the road running from day one. The tech industry has been one of the major contributors in terms of employment and in terms of achieving the government mission in taking the economy to $6 trillion by 2025.

Robust Flexibility of Online Learning to Increase Its Popularity :

O ine learning captures maximum share due to the high preference for traditional teaching-learning methods. However, the amalgamation of digitalization such as e-learning or smart learning in the traditional teaching methods. Incorporating advanced learning methods has reduced the facultys workload by automating various educational processes, and it is encouraging organizations to adopt these technologies.

The online learning segment is likely to witness remarkable growth during the forecast period. This is owing to the rise in funding for online education programs. Besides, the scalability and exibility o ered by online learning platforms are likely to aid segmental growth in the forthcoming years.

OPPORTUNITIES IN EDUCATION & TRAINING INDUSTRY:

While the education and training industry in India faces challenges, it also presents signi cant growth opportunities driven by digital transformation, skill development initiatives, and evolving learning preferences. Keeping abreast of market trends and adapting to changing dynamics will be essential for stakeholders to thrive in this landscape. Here are some of the opportunities

(a) Investments in Education: 100 per cent FDI (automatic route) is allowed in the Indian education sector. An estimated investment of US$ 200 billion is required to achieve the governments target of 33 per cent GER for the education sector by 2025. The government also promotes Public Private Partnership (PPP) and tax concessions to encourage foreign players in the industry. There is a large opportunity for nancial institutions in the sector.

(b) Immense Growth potential: India has the worlds largest population of about 500 million in the age bracket of 5-24 years and this provides a great opportunity for the education sector. The Indian education sector is set for strong growth, buoyed by a strong demand for quality education. The education industry in India is estimated to reach US$ 75 billion by 2023 from US$ 97.8 billion in 2016. The Online Education Market share in India is estimated to grow by USD 2.28 billion from 2021 to 2026. Factors such as skill development and employment and the emergence of cloud computing are signi cantly driving the Online Education Market in India

(c) Growth driver for Online Education:-

- Digital Infrastructure Expansion: Ongoing e orts to improve internet connectivity and digital infrastructure across India are pivotal in driving the growth of online education. Increased access to high-speed internet and mobile connectivity facilitates broader participation in online learning platforms

- Shift towards Digital Learning: The COVID-19 pandemic accelerated the acceptance of digital learning as a viable alternative to traditional classroom-based education. This paradigm shift towards digital learning, coupled with changing attitudes towards online education, fuels the growth of the sector

- A Low-cost Alternative: Online platform needs lower infrastructure cost to serve a large base of students hence leading to saving on cost through economies of scale.

- Demand for Upskilling and Reskilling: Increasing demand for upskilling and reskilling in response to evolving industry needs and job market dynamics drives the adoption of online education. Professionals seeking to enhance their skills and stay relevant in a competitive job market contribute to the demand for online courses and certi cation programs.

- Customized and Flexible Learning Options: Online education o ers customized learning pathways and exible scheduling options, catering to diverse learning preferences and lifestyles. Learners can access content anytime, anywhere, enabling personalized learning experiences tailored to individual needs.

- Technological Advancements: Continuous advancements in educational technology, such as arti cial intelligence, machine learning, and augmented reality, enhance the e ectiveness and interactivity of online learning platforms. Innovative features and tools improve engagement, retention, and learning outcomes, driving user adoption.

- Growing EdTech Ecosystem: A thriving ecosystem of EdTech startups and companies fosters innovation and competition, leading to the development of diverse online learning solutions. Investments, collaborations, and mergers within the EdTech sector contribute to the expansion and diversi cation of online education o erings.

- Government Initiatives and Policies: Supportive government policies and initiatives, such as Digital India and National Education

Policy (NEP) 2020, emphasize the integration of technology in education and promote the adoption of online learning platforms. Strategic collaborations between government bodies, educational institutions, and EdTech companies further propel growth.

- Global Market Opportunities: Indias position as a global hub for technology and outsourcing presents opportunities for online education providers to tap into international markets. Leveraging Indias expertise in technology and education, online platforms can attract learners from around the world, driving growth and revenue.

- Changing Demographics and Education Preferences: Shifting demographics, including a young and tech-savvy population, coupled with changing education preferences towards convenient and self-paced learning modes, bolster the demand for online education. The desire for continuous learning and skill development further fuels the growth of the online education market in India.

- Growing penetration of Smartphone : There are around 291 million smart phone users in India and it is estimated to reach 630 million by 2025. This will further add to the demand for online education due to convenience of medium. Availability of low-cost smartphones has led to an increase in the demand for internet services. This has spurred the demand for online content, including education material, in both rural and urban areas. People are considering online learning as a low cost substitute for traditional learning.

- Automation at Scale : Constant look out for smart and intelligent automation solutions.

- Going Digital: Increased digital transformation e orts across domains in the post-COVID world. The Internet being a ordable with strong bandwidths and the campaign called Digital India in hand has brought a massive surge in this industry.The government aims to ensure universal access to mobile phones, to facilitate people with high-speed internet, to bring electronic delivery of services, to provide online information and knowledge accessibility easy to all citizens through this campaign.

- Emergence of cloud computing: online education market trends in India is the rise of cloud computing. The government, has established the National Digital Library and the National Academic Repository to support e-learning in educational institutions. The adoption of cloud-based learning platforms in the online education market will assist in resolving the issue of insu cient infrastructure and security, resulting in increased adoption of cloud-based learning platforms.

(d) Public Private Partnership (PPP) :

Setting up of formal educational institutes under the Public Private Partnership (PPP) mode and enlarging the existing ones . In the case of PPP the Government is considering di erent models like the basic infrastructure model, outsourcing model, equity/hybrid model and reverse outsourcing model.

(e) Adoption of the online learning model:

The COVID-19 pandemic precipitated a seismic shift in education delivery and learning practices nationwide. Lockdown measures propelled the swift adoption of the online learning model, which was already gaining momentum as a burgeoning market in India.

Virtual classrooms and a myriad of online tools have revolutionized the interaction between educators and learners, fostering increased familiarity and usage among users. Digital education has ushered in novel opportunities for both teachers and students, enhancing engagement and participation in the learning process.

The integration of cutting-edge technology-driven learning tools such as smartphones, smartboards, MOOCs, tablets, and laptops has fundamentally transformed the educational landscape in schools and colleges, heralding a new era in education delivery..

(f) Start-ups in EdTech

The pandemic catalyzed unprecedented transformations in the education sector, providing fertile ground for start-ups to catalyze change. The Education and Training Industry witnessed a surge in start-up activity and investment compared to 2019. EdTech startups are innovating towards more engaging and personalized products tailored to users learning abilities. The surge in e-learnings popularity, fueled by pandemic-induced restrictions, is expanding its global scope. Consequently, Indias EdTech sector is poised to burgeon into a US$30 billion industry over the next decade, as projected by industry analysts.

The Internet of Things (IoT) emerges as a cost-e ective and potent tool for educational enhancement, enabling a world-class learning experience for all. EdTech companies are diligently pursuing innovative solutions to democratize access to education, leveraging IoT technologies.

(g) E-Learning Platforms:

The proliferation of e-learning platforms o ers opportunities for entrepreneurs and educators to create and deliver high-quality educational content across diverse subjects and domains. Customized learning experiences, interactive tools, and adaptive learning algorithms can enhance student engagement and outcomes.

(i) Inclusive Education: There is a growing recognition of the importance of inclusive education in promoting equity, diversity, and social inclusion. Opportunities exist for initiatives that address the needs of marginalized communities, provide accessible learning resources, and promote inclusive teaching practices.

(ii). Emerging Technologies: Emerging technologies such as augmented reality (AR), virtual reality (VR), blockchain, and data analytics hold potential to transform teaching and learning experiences. Exploring applications of these technologies in education delivery, content creation, and student engagement can open new avenues for innovation and growth

EDUCATION SECTOR - THREATS & CHALLENGES & CONCERNS FOR GEL:

The education industry in India presents signi cant opportunities for growth, but stakeholders should be mindful of potential risks and uncertainties. These include regulatory changes, market competition, economic volatility, technological risks, student enrollment challenges, nancial sustainability, global and geopolitical risks, public health concerns, legal and litigation risks, and environmental, social, and governance (ESG) factors. It is important for stakeholders to proactively manage these risks to ensure the long-term resilience and success of educational institutions in India

- Financial Sustainability and Funding Constraints: Educational institutions may face nancial challenges related to revenue diversi cation, tuition a ordability, fundraising, and grant funding availability. Reduced government funding, budget constraints, and liquidity pressures could impact the nancial sustainability of institutions, particularly in the context of increased competition and operational costs

- Lack of infrastructure and essential learning environment: In India, high-speed broadband is either not available in many places or is too expensive, rendering the idea of cost-e ective online education unworkable. Facilities such as optical ber transmission and internet service providers are not available in less developed states or isolated towns. Furthermore, fundamental IT infrastructure, such as advanced hardware, software, and data centres, are not available for services that incorporate both classroom and e-learning. As a result, despite widespread use of the Internet and cellphones, the market for online education faces challenges due to a lack of infrastructure and learning settings.

- Digital Infrastructure and Technological Risks: Reliance on digital infrastructure, including internet connectivity, cybersecurity measures, and technological platforms, exposes the education industry to risks such as data breaches, cyberattacks, system failures, and disruptions in online learning delivery. Ensuring the reliability, security, and scalability of digital infrastructure is essential to mitigate these risks

- Market Competition and Disruption: Intense competition within the education industry, coupled with the emergence of disruptive technologies and new market entrants, could exert pressure on pricing, market share, and pro tability. Rapid technological advancements and changing consumer preferences may necessitate continuous innovation and adaptation to remain competitive.

- Economic Volatility and Market Conditions: Economic volatility, uctuations in consumer spending, and macroeconomic factors such as in ation, currency exchange rates, and interest rates may a ect the overall demand for educational services and discretionary spending by students and institutions. Adverse economic conditions could impact enrollment rates, tuition fees, and funding sources.

- Curriculum Relevance: The curriculum often lacks relevance to real-world skills and evolving industry needs, resulting in a gap between education and employment requirements. A rigid curriculum framework limits opportunities for holistic development and practical learning experiences.

- Assessment and Evaluation Practices: Traditional assessment methods focus on rote memorization rather than critical thinking, creativity, and problem-solving skills. Overemphasis on examinations and standardized testing perpetuates a culture of academic pressure and sti es innovative teaching approaches

- Quality Disparities: Disparities in educational quality persist across regions and institutions, a ecting learning outcomes and opportunities for students. Unequal access to trained teachers, outdated curriculum, and inadequate facilities undermine e orts to provide equitable education.

- Global and Geopolitical Risks: Global events, geopolitical tensions, trade policies, and international collaborations may have implications for the education industry in India, including foreign student enrollment, academic partnerships, research collaborations, and funding sources. Changes in geopolitical dynamics could a ect cross-border mobility, exchange programs, and internationalization e orts.

- Pressure on margins: There could be a margin pressure due to sta costs, cost of study material, high advertising and business promotions, etc, going forward. We believe the Company has su cient tools to counter these factors, if the same arises.

- Attrition: Attrition in the senior management/faculty team may impact the business. The Companys strategy for retaining talent involves o ering competitive compensation packages, faculty training system in place for new entrants and existing faculty, along with a healthy working environment.

- Geographical concentration: The Company derives the larger share of its revenue from Maharashtra. Hence, any disruption in operations, or competition at this location could impact overall operations signi cantly. The Company is making a concerted e ort to expand its operations pan-India, overseas and is also boosting its Technology O erings, Distance Learning segment etc.

- Threat of New Entrants with moderate : Minimal infrastructure requirements allow start-ups to venture into the pre school and vocational study sectors. The rapidly changing world, the speed of knowledge creation, and economic pressures are causing higher education institutions to place greater emphasis on exibility.

- Impact of External Factors: External factors such as natural disasters, public health crises, and socio-political instability can disrupt educational continuity, exacerbating existing challenges and widening educational disparities. Building resilience and contingency planning are essential to mitigate the impact of external shocks on the education sector

PERFORMANCE OF YOUR COMPANY:

Your Company is strategically preparing itself for the next phase of growth through value-added capabilities, new capacities, continuous perseverance, and inventiveness. It is taking on new opportunities which are bottom line accretive and margin accretive. The expansion strategies have been devised keeping in mind its risk-mitigating approach towards incurring capex and making continuous investments into the productive assets to become "future ready" and deliver on our promises. The Companys agile business model and portfolio ensured conversion of opportunities, maximally optimizing the countrys conducive and relatively stable environment in an otherwise volatile global weather, leading to a quantum leap in performance, back to pre-pandemic and pre-portfolio realignment levels. Cost e ciency programs together with strategic investments for new facilities, product launches, and launch of online business models supported this journey of pro table growth.

Revenue:

The Company achieved total income for the nancial year 2023-2024 on standalone basis stood at Rs. 7163.69 Lakhs.; a growth of 15.56% compared to the FY 2022-2023.

EBITDA

EBITDA for the full year was reported at Rs 4546.93 Lakhs as against Rs. 3669.88 Lakhs in the previous year increased by 23.89%

Net Pro t after Tax:

The net pro t (excluding comprehensive income) grew at 34.18% from Rs. 2269.06 lakhs for FY23 to Rs. 3044.63 Lakhs for FY24 in the backdrop of cost-optimization measures, innovative service-delivery models and operational e ciencies.

Earnings per Share:

Adjusted Diluted earnings per share stood at Rs. 14.95 in FY 2023-2024 as against Rs.11.14 in FY 2022-2023.

Cash and Bank Balances:

The Balance Sheet of the Company is also quite healthy with almost no debt, reasonable working capital cycle and cash/liquid investments valued at about Rs. 829.79Lakhs as on 31st March 2024 as against Rs. 902.12 Lakhs in the previous year.

i) Educational Training And Development Activities :

The Company achieved Gross Value Services of Rs. 5203.75 Lacs during the nancial year, compared to Rs. 4321.33 Lacs in the preceding nancial year on standalone basis. This segment reported a increase in the performance during the year due to new segment of medical training programs and increase in demand for soft skill development programs in the Corporates and other allied institutions across the state.

ii) Educational Business Support Activities:

The Company achieved Gross Value of Trading and Support activities comprised of Rs. 1959.93 Lacs during the nancial year, compared to Rs. 1877.70 Lacs in the preceding nancial year on standalone basis. The Performance of Products segment demonstrated a 4.38% increase in FY 2023-24..

However your Company has developed an extensive network of domestic clientele and undertaken meticulous e orts to position its products into right geographies, cater to high value end-users and elevate operational e ciencies.

b) Capital Expenditure:- During the year under review, your Company entailed a capital expenditure of around Rs. 53.04 Lakhs towards expansion in Supply of Infrastructure & Other services segments, to enhance the capacities of major services and also towards increasing operational e ciencies

c) Dividend Policy : Your Company continues to be on the path of pro table growth. The Companys cash ow and nancial position continue to be strong. Considering the cash requirement for business growth and debt servicing, the Board believe that a steady dividend payout will best serve the interests of the Company and of the shareholders especially those dependent on regular income. During the Financial Year 2023-2024 under review, the Board of Directors of your Company has at its Meetings held on 08th August 2023, 07th November 2024 and 23rd January 2024 declared First Interim Dividend @ 25 % i.e. Rs.1.25/- (Rupee One and Paise Twenty Five Only), Second Interim Dividend @ 30% i.e. Rs.1.50/- (Rupee One and Paise Fifty Only) Third Interim Dividend @ 25 % i.e. Rs.1.25/- (Rupee One and Paise Twenty Five Only) respectively per Equity Share of face value of Rs.5/- each fully paid-up for the current nancial year 2023-2024 ended 31st March 2024 which was paid to the members, whose names appeared on the Register of Members of the Company on Wednesday 23rd August 2023 (First Interim Dividend), Wednesday 22nd November, 2023 (Second Interim Dividend); and Saturday, 03rd February, 2024 (Third Interim Dividend )respectively . The Gross interim dividend (First, Second, Third) payout, was Rs. 814.424 Lakhs

Your Directors recommended a nal dividend @ 20% (Twenty Percent) i.e. Rs.1.00/- (Rupee One Only) per Equity Share of face value of Rs.5/- each to be appropriated from the pro ts of the year 2023 - 2024, subject to the approval of the shareholders (members) at the ensuing Thirteenth (13th) Annual General Meeting and will be paid to those members whose names appear on the Register of Members on Friday, 21st June, 2024.

Cumulatively, the company has declared/ recommended a Total Dividend of 100% for the year under review comprising of First Interim Dividend @ 25 % i.e. Rs.1.25/- (Rupee One and Paise Twenty Five Only), Second Interim Dividend @ 30% i.e. Rs.1.50/- (Rupee One and Paise Fifty Only) Third Interim Dividend @ 25 % i.e. Rs.1.25/- (Rupee One and Paise Twenty Five Only) respectively per Equity Share of face value of Rs.5/- each and Final Dividend @ 20% i.e. Rs. 1.00 ( Rupee One Only) per Equity Share of face value of Rs.5/- each (subject to approval of the Members of the Company at the ensuing Thirteenth (13th) Annual General Meeting ).Our Company has formal dividend distribution policy and the said dividend pay-out is in compliance with the applicable Secretarial Standard -3 (SS-3) on Dividend issued by the Institute of Company Secretaries of India.

d) Signi cant Changes in Key Financial Ratios:

Following are ratios for the current nancial year and their comparison with preceding nancial year, along with explanations where the change has been 25% or more when compared to immediately preceding year.

Key Financial Ratios	2023-24	2022-23
Debtors Turnover Ratio	3.58	4.91
Debtor Days	102	74
Inventory Turnover Ratio	14.27	13.12
Inventory Days	26	28
Interest coverage ratio	Nil	Nil
*Debt Equity Ratio	Nil	Nil
Current Ratio	7.67	4.70
Return on Net Worth (%)	35.53%	34.79%
Operating Pro t Margin (%)	57.64%	49.06%
Net Pro t Margin (%)	42.50%	36.71%

* Company is a Debt Free Entity, having no Interest Expenses and External Borrowings.

Debtor Turnover ratio: During the FY 2023-24 the debtor turnover ratio is 3.58 as compared to 4.91 in FY 2022-23 on account of increase in our debtors. The company is making a concerted e ort to collect payment from debtors.

Debtor days: The debtor days have increased from 74 days in FY 2022-23 to 102 days in FY 2023-24 our debtors has increased. The company is making a concerted e ort to collect payment from debtors.

Inventory days: The inventory days have decreased from 28 days in FY 2022-23 to 26 days in FY 2023-24 Revenue growth and e cient inventory operations during the year has led to faster inventory churning and thereby the inventory turnover ratio has been improved

Interest Coverage Ratio: During the F.Y. 2023-24 and F.Y. 2022-23 interest coverage ratio is Nil.

Inventory Turnover ratio: During the FY 2023-24 the inventory turnover ratio is 14.27 as compared to 13.12 in FY 2022-23 on account of e cient inventory operations during the year has led to faster inventory churning.

Current ratio: During the FY 2023-24 the current ratio is 7.67 as compared to 4.70 in FY 2022-23. This increase was primarily attributable to an increase in receivables during the year. The current ratio is above the industry benchmark.

Operating pro t margin: The operating pro t margin has increased from 49.06% in FY 2022-23 to 57.64% in FY 2023-24 The primary cause of this increase was a rise in revenue growth.

Net pro t margin: The net pro t margin has increased from 42.50% in FY 2023-24 to 36.71% in FY 2022-23 on account of growth in revenue, operational e ciency and faster inventory churning

Return on Net Worth: The return on net worth has increased from 34.79% in FY 2022-23 to 35.53% in FY 2023-24 on account of growth in revenue

e) Publishing and Content Development:

Under its brand Global Publications, the Company publishes niche test prep titles for popular entrance examinations in India. The Company seeks to leverage "Global Publications" brand image and reputation to reach out to what it believes to be a signi cant student population currently relying on self-study, to cross-sell its test prep courses. Further in addition to content in English, the Company is in the process of gradually adding dual language titles (in Hindi and regional languages),across di erent examinations, with the objective of deepening its presence in regional markets.

HUMAN RESOURCES:-

Global has demonstrated its excellence to thousands of satis ed students and their corporate clients. All this would not be possible without the committed and passionate people of GEL-both academic and non-academic sta , who strive to build this a great organization each and every day. They remain committed to companys ideals of building on a strong foundation, creating a bright future and delivering great value. The company continues to strengthen the management team and add additional talent and expertise. By 31 March 2024, the Company had total number of permanent employees of 155and 120 professionals [Contractual employees].

FY2025 is poised to be another growth year for the industry where digital skills will be high on demand. There is huge focus on innovation and partnership across the ecosystem. Global is well aligned with these trends where we have developed an ecosystem of skill development, digital reskilling and matching to latest technologies.

Globals team is focused on investing in upskilling individuals with the latest technology skills and providing them with career paths that match their aspirations by acquiring the best talent available in each of the industry it operates in, providing a supportive and vibrant workplace to engage that talent.

INTERNAL CONTROLS & SYSTEMS

The Company has proper and adequate internal control systems, which ensure that all assets are safeguarded against loss from unauthorized use and all transactions are authorized, recorded and reported correctly. The Management continuously reviews the internal control systems and procedures to ensure orderly and e cient conduct of business. Internal audits are regularly conducted, using external and internal resources to monitor the e ectiveness of internal controls. The Company deploys a robust system of internal control that facilitates the accurate and timely compilation of nancial statements and Management reports; ensures regulatory and statutory compliance; and safeguards investors interests by ensuring the highest level of governance and periodical communication with investors.

Messers C. R. Sagdeo & Co.; Chartered Accountants, Nagpur (ICAI Firm Registration No. 108959W) is the internal auditor of the Company, who conducts audit and submit quarterly reports to the Audit Committee. The Internal Audit is processed to designed to review the adequacy of internal control checks in the system and covers all signi cant areas of the Companys operations. The Audit Committee reviews the e ectiveness of the Companys internal control system. The WTD and CFO certi cation section of the annual report further discusses the adequacy of our internal control systems and procedures.

RISK MANAGEMENT

The Company has a robust Risk Management Charter and Policy, which provides an overall framework for Risk Management (RM) in the Company. The key elements of the Companys risk management framework have been captured in the risk management policy, which details the process for identifying, escalating, prioritizing, mitigating, and monitoring key risk events and action plans. The assessment of the risks covers areas of Strategy, Technology, Finance, Operations and Systems, Legal & Regulatory and Human Resources. There are appropriate assurance and monitoring mechanisms in place to monitor the e ectiveness of the risk management framework including the mitigation plans identi ed by the management for key risks identi ed through the risk management exercise.

The Companys existing framework provides for risk reviews at various levels based on Companys organizational structure matrix. Periodic assessment of risks, potential impact relating to business growth, pro tability, talent engagement, and market position are conducted. Response to key operational risks, based on inputs received from the internal and external assessment, internal audit, performance review etc. are done on a regular basis

ROAD AHEAD

- Various government initiatives are being adopted to boost the growth of distance education market, besides focusing on new education techniques, such as E-learning and M-learning. The concept of anywhere, anytime, self-paced learning through live and interactive digital media is gaining widespread popularity and acceptance among students, especially those who are otherwise unable to receive quality education in physical classrooms. Over the next ve years, the digital education segment looks set to track higher growth trajectory even as the government intensi es its focus to transform India into a digitally empowered and knowledge-based society..

- Education sector has seen a host of reforms and improved nancial outlays in recent years that could possibly transform the country into a knowledge haven. With human resources increasingly gaining signi cance in the overall development of the country, development of education Infrastructure is expected to remain the key focus in the current decade. In this scenario, infrastructure investment in the education sector is likely to see a considerable increase in the current decade.

- Moreover, availability of English speaking tech-educated talent, democratic governance and a strong legal and intellectual property protection framework are enablers for world class product development.

- The Government of India has taken several steps including opening of IITs and IIMs in new locations as well as allocating educational grants for research scholars in most government institutions. Furthermore, with online modes of education being used by several educational organisations, the higher education sector in India is set for some major changes and developments in the years to come.

- As e-learning continues to grow more popular, its scope is widening worldwide due to pandemic led restrictions. As a result, Indias own education technology (Edtech) sector is expected by industry analysts to become a US$30 billion industry over the next decade. The pandemic carved the path for the digital revolution of the market and upscaled its landscape signi cantly. While the sector was resilient in its approach last year; it is bracing for growth and transformations in 2025. With digitization at its prime; it is anticipated that the education technology (Edtech) sector will become outcome-focused in the times to come.

- In Year 2024, digitization was aggressive. Arti cial Intelligence and Machine Learning has gained prominence in the times ahead. It is due to technology that education has been able to reach even remote areas as well. The growth of the internet, easy availability of smartphones, and the a ordable pricing of the internet are driving the expansion of online education in urban areas and even remotest of locations.

- Skill-Centric Education will increasingly prioritize the development of skills and competencies that are relevant to the rapidly evolving job market. Institutions will focus on equipping students with critical thinking, problem-solving, digital literacy, and soft skills to thrive in the future workforce.

- Tech-Enabled Pedagogy: Technology will play an increasingly integral role in pedagogy, enabling interactive and immersive learning experiences through augmented reality, virtual reality, gami cation, and simulations. Educators will leverage innovative tools and platforms to enhance engagement and student outcomes

- Global Collaboration and Mobility: The education sector will witness greater collaboration and mobility on a global scale, with increased opportunities for international exchange programs, research collaborations, and cross-border learning initiatives. Students and educators will bene t from exposure to diverse perspectives and cultures.

- Continuous Innovation and Adaptation: The education industry will need to continuously innovate and adapt to meet the evolving needs and challenges of learners, educators, and society. Institutions, policymakers, and stakeholders will collaborate to drive innovation in curriculum design, instructional methods, and educational technologies.

- Resilience and Preparedness: Building resilience and preparedness will be paramount in navigating future disruptions and challenges, whether from public health crises, technological disruptions, or socio-economic changes. Education systems will prioritize exibility, agility, and contingency planning to ensure continuity and quality in learning outcomes

- Accreditation and Recognition-

With a steady vision and focused growth strategy, GEL is currently involved in the mission for enhancing the human capital of the country through skill development and employability training. GEL has collaborated with Deen Dayal Upadhyaya Grameen Kaushalya Yojna (DDU-GKY) (a scheme of Ministry of Rural Development (MoRD)) skilling for imparting for training & skill development programs in the State of Maharashtra and to transform rural poor youth into an economically independent and globally relevant workforce.

OUTLOOK:

Revenue growth with signi cant margin development during year 2023-2024 was an outcome of the Companys consistent investments into business fundamentals. Increasing contribution from the new & existing divisions was quite remarkable as well. Now, the Company is well placed to capture the enormous potential and large opportunities available in key education verticals such as e-Learning and Vocational Education.

Strategically, the Company has got a perfect mix of high returns and more sustainable business segments. Educational Training and Development Activities provide higher returns whilst Educational Business Support Activities o ers annuity and sustainability. The new initiatives ie e- Learning (Tapping multiple media Youtube, Mobile Apps and Portals), Skill Development and Publication are also expected to fuel the growth without any additional signi cant capex. There is a continuous thrust from the management to develop a strong R&D and technical service team to develop new products, explore new applications and understand better the changing customer needs.

Given the above macro-economic conditions, GEL will continue to focus on its core Consumer and Enterprise business to grow. In the upcoming years the GEL has focus on digital expansion by tapping multiple media. Further, GEL also focus on expansion of Business Partner networks. The GEL continuous endeavour to align with the ever evolving technology landscape and customer expectations. The GEL focus on creating a business-friendly environment that supports overall industry growth. The Gel endeavour to build a collaborative strategic relationship with its customers and also to generate adequate shareholder returns over the next several decades.

With the Companys continuous endeavour to improve e ciencies and performance at all levels and functions, your Board view the prospects for the nancial year 2024-25 with cautious optimism.

CAUTIONARY STATEMENT:

The statements contained in the Boards Report and Management Discussion and Analysis report contain certain statements relating to the future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause our actual results to di er materially from those in such forward-looking statements.

The conditions caused by the COVID-19 pandemic could decrease customers technology spending, a ecting demand for our services, delaying prospective customers purchasing decisions, and impacting our ability to provide on-site consulting services; all of which could adversely a ect our future revenue, margin and overall nancial performance. Actual results, performances or achievements could di er materially from those expressed or implied in such forward looking statements.

Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. The above discussion and analysis should be read in conjunction with the Companys nancial statements included in this report and the notes thereto.